Urgent calls to support the North East economy have been made by the region’s largest business organisation as signs mount of the growing damage caused by the coronavirus outbreak.
The North East England Chamber of Commerce has written to Chancellor Rishi Sunak saying that the pandemic has exacerbated regional differences in unemployment and inequality.
The letter - which comes as new research shows huge rises in the number of people in the North East competing for each available job - urges the Government to come good on its “levelling up” election promise with funding to support education, transport and business support in the region.
The Chamber has also called on the Government to use the North East’s strengths in renewable energy and electric vehicles to ensure that any recovery from the coronavirus downturn is sustainable.
Chamber chief executive James Ramsbotham said: “The economic impact of Covid-19 has been almost beyond comprehension. Our own surveys show indicators for sales and cashflow falling to levels far below historic lows. The fall has been deep, and it has been fast.
“We believe in the strength and untapped potential of the economy of North East England, yet we are realistic about the long-term challenges that still need to be addressed, such as above average unemployment and levels of economic inequality.
“The consequences of this crisis and the resulting recession will not be felt evenly across the country and across society. Experience teaches us that downturns are more pronounced in regions such as ours and fall disproportionately on those with the least capacity to withstand them.
“Any recovery must be built on the principle of fairness. This Government came into power on the back of promises to ‘level up’ places like the North East. You must not lose sight of that now. Instead, you must redouble efforts to increase investment and inclusive growth in our region.
“We cannot afford to yet again be left behind due to policies and decisions that do not recognise regional disparities.”
The Chamber’s letter - which anticipates a much-rumoured emergency Budget next month - sets out a number of measures that could help businesses in the region, including improvements to the planning system, investment in education and skills, improvements to housing and regeneration of town centres.
Last week, official data showed a second big rise in people claiming unemployment benefits in the North East, with the region having the highest level of joblessness in the country.
The North East LEP has joined politicians and business groups in putting together a plan that aims to ensure the region is not left behind in the coronavirus recovery, warning there will be high unemployment and large numbers of company failures if no action is taken.
Meanwhile, a study by the Institute of Employment has outlined how the number of people chasing each job vacancy has more than tripled - from five to 17 - in just the last two months.
The North East has the highest number of people competing for jobs in the Ƶ after Northern Ireland.
Nissan, De La Rue and British Engines have all announced big job losses in the region in recent days.
